"NSW will continue to have the toughest counter-terror laws in the country and we will now give our police clear protections if they need to use lethal force against terrorists," she said in a statement.

"I'm pleased to say this morning Cabinet has met and the NSW government will be adopting and supporting all of the 45 recommendations.

"Some of the recommendations obviously relate to Federal government agencies or else jurisdictions outside NSW, and of course we will support all of those recommendations and work with those relevant agencies.

"Those that relate to specifically to NSW and NSW agencies, we will be accepting in full. Some of them require us to review processes which we will be doing, some of them advocate for other measures which we will be accepting."

The new laws, which are expected to be introduced into the NSW parliament by the end of June alongside laws designed to tighten parole provisions by considering a person's links to terrorism, will cover a "grey area" in state legislation that makes it unclear whether police can shoot dead a terror suspect prior to there being any clear harm to the public, according to the ABC.

NSW Police Commissioner Mick Fuller said police already have the legal protection to shoot a terrorist dead in circumstances similar to the London Attacks but snipers may not have been allowed to shoot Man Haron Monis in the Sydney Siege prior to him harming a hostage.

Under the new legislation, the state Police Commissioner can declare similar events as a 'terrorist incident' and allow police to take lethal force against terror suspects with a pre-emptive kill-shot.

As part of the Coronial Inquest findings handed down in May, NSW State Coroner Michael Barnes was particularly critical of the Department of Public Prosecution for failing to secure Man Monis' bail in the weeks leading up to the siege, and the police psychiatrist who advised police negotiators for overstepping his role.

He also found that the police response was inadequate in terms of police negotiators' approach in dealing with gunman, the delay in police entering the Lindt Cafe after Man Monis started firing and the "infrequent and inadequate" information provided to the families of hostages.

Australia's Attorney-General and Liberal Senator George Brandis also handed down his response to the findings on Thursday, saying the Federal government will accept "all Commonwealth related recommendations" of the inquest report.